The Dangers of Investing in Cannabis Stocks
By Michael Berger of Technical420.com
The cannabis industry is the hottest industry in the United States and it is growing at a rapid rate. This growth has led to a surge in the number of publicly traded cannabis companies. There are more 250 such companies and most of them will dissolve or shut down over the next two years.
Since, the emergence of the cannabis industry has created opportunities for fraudsters, investors need to do their due diligence before investing in a cannabis company. Investors need to evaluate the source of information before acting on it.
During the past year we have seen a number of new financial research firms enter the cannabis industry. These “research firms” are not what they present themselves to be. These firms do not provide accurate information and their analysis is completely biased. Many of these research firms issue price targets on these companies that are 1000% higher than the stock’s current price. How can you set a price target on a company that does not generate revenue, has billions of shares outstanding, and has no institutional investors?
These research firms are not research firms, they are actually investor relations firms. These firms accept money or stock from a company, and in return the company receives a well written research report which is edited by the company before the “research firm” publishes it. The end result of this transaction is the release of a company report that is full of misleading statements and inaccurate analysis.
Why is this relevant?
The reason why I am discussing this topic today is because a perfect example of this fraud was published through a press release from IJJ Corporation (IJJP) today. The press release states the following:
“IJJ Corporation (IJJP) today announced that WEALTHMAKERS.COM / www.wealthmakers.com, a Wall Street research and trading firm providing unbiased statistical stock market predictions to empower investors, securities professionals and public company employees to make precise, predictive and profitable trading decisions, has initiated its coverage today on IJJ Corporation (IJJP). The report highlights the short term bullish pattern that has emerged, the SqueezeTrigger Price of $.0029 and the projected short squeeze valuation of $.1021 per share.”
Click here to download report: http://www.buyins.com/reports/ijjp3-19-15.pdf
Read the Disclosures!
I did not read this report. I immediately looked at the company disclosures on the last page which stated the following.
”WealthMakers has received $1,116 per month for data provided six monthly reports. WealthMakers affiliates, officers, directors and employees do not own shares of the company mentioned in this report, but may from time to time buy/sell the shares discussed in this opinion and may profit from those trades.”
The firm claims to be a Wall Street firm that is providing unbiased statistical stock market predictions to empower investors. The disclosures clearly state that the firm is BIASED .The company is also not a Wall Street firm; they are based in California.
Technical420 is the only firm to publish independent research
My name is Michael Berger and I am the president and founder of Technical420 LLC. Technical420 is an online research firm focused on providing accurate, non-biased information on publicly traded cannabis companies. How are we different from everyone else?
- We do not accept money from companies for favorable ratings or reports
- We are independent. We do not send our research reports to the company prior to publishing them.
- Technical420 analysts cannot buy or sell cannabis stocks.
Proceed with caution
Investors need to do their due diligence before investing in a cannabis stock. Check out our website,www.technical420.com and sign up for a Pro Trader membership. It costs $20 a month, but members get a one week free trial and they can cancel at any time for free!
Technical420 sells its research reports through its store (https://technical420.com/store). Our reports are the only independent, non-biased research reports available. Every other firm accepts money, allows the cannabis company to edit the report, and/or owns stock in that company.
Michael Berger is the president and founder of Technical420.com, an online research firm for publicly traded cannabis companies. Michael started following the cannabis industry in 2012 while working at Raymond James Financial. Michael worked in the equity research department at Raymond James before leaving to start Technical420. Technical420 utilizes an algorithm developed by Michael that merges technical, fundamental and sentiment data to yield the most comprehensive analysis.